Auto accident lawyers help victims receive the money necessary for hospital bills, rehabilitative therapy, and funeral costs when the party at fault does not have enough insurance to pay for all damages. According to the National Safety Council, motor vehicle accidents in the first six months of 2021 cost insurers nearly $250 billion in payouts for fatalities, injuries, and damaged property. Auto accident lawyers on the at-fault driver’s side also help keep the costs of each accident under control. Otherwise, that figure would have been even more eye-popping. Let’s discuss a few important aspects of this situation.
Paying for an Accident in a Borrowed Car
In most cases, the answer to this question is relative to the specific event. If you permit someone to borrow your car, then in all states except New Hampshire, your insurance company will pay up to the limits of your coverage. Your insurance company pays first because auto insurance typically follows the car, not the driver. After reaching the limits of your insurance policy coverage, the person driving your vehicle will pay for any remaining damage.
However, if you allowed someone who was not competent to drive your car, you may have difficulty getting paid for that accident. For example, if you permitted someone with no license or a suspended license to drive your vehicle, you may be responsible for the entire bill, even if their actions did not directly cause the collision.
Understanding Permissive Use
It will help to know that permissive use refers to allowing others to drive your car even if you don’t name them as a household member or regular driver on your insurance policy. This permission includes spouses and family members living in the same household as you. You may also add roommates, friends, and unpaid care providers who use your car on your behalf, but you must do so by name in most cases. Insurance companies use the term “named insured” for these unrelated drivers.
Liability Insurance Follows the Driver
This insurance covers the named drivers, no matter which vehicle they drive. Liability insurance covers you when you rent a moving van, for example, or get a rental car during a trip to another city. If you scrap a car and don’t finance the replacement, you typically stick with your current liability coverage. If you finance, however, your finance company may require you to obtain comprehensive and collision coverage.
Comprehensive and Collision Insurance Follow the Car
This should be explained when purchasing your policy. Comprehensive and collision insurance covers the car. Comprehensive and collision policies cover the insured vehicle against damage by accidents, storms, or vandalism. However, the policy will not pay for an accident caused by any driver not listed as a “named insured” and who is not a child or family member. Even if you have comprehensive and collision insurance, you may need to seek the advice of auto accident lawyers if your insurance company refuses to pay when someone borrows your car and gets into an accident.
Filing an Accident Claim
When you contact an accident attorney, you will need a copy of the police report, your insurance policy, and the other driver’s policy. In addition, take the name and contact information of anyone else at the scene of the accident, especially any other drivers and passengers. Taking photos of any damage to every vehicle involved will help bolster your claim. If you do not see any, document the lack of damage to prevent fraudulent claims later.
Surprisingly, the police do not determine who causes an accident. That task belongs to the insurance claims adjusters. After they review the police report, speak with all the drivers and passengers, and interview any witnesses, they’ll decide which driver caused the accident. Their decision will include whether both drivers contributed to the collision and, if so, by what percent. Payouts will then go according to the percentage of fault each driver shared.
Contact Putnam Lieb Potvin Dailey if someone borrows your car and gets into a wreck before accepting a determination of fault and insufficient damage award. We can help you navigate the insurance claims process and protect your rights. We’d be happy to help get the results you deserve.